This position paper is an attempt to show how realoptions theory and portfolio theory—can be applied to making software investment decisions in practice. We have previously developed a method, called CBAM, for making software investment decisions based upon architectural analysis, and have applied this method to a large-scale system development—NASA’s ECS project. Building upon this experience,...

SFI WORKING PAPER: 2003-11-061 SFI Working Papers contain accounts of scientific work of the author(s) and do not necessarily represent the views of the Santa Fe Institute. We accept papers intended for publication in peer-reviewed journals or proceedings volumes, but not papers that have already appeared in print. Except for papers by our external faculty, papers must be based on work done at ...